Can I Airbnb in Cape May, NJ? (2026)

Short-term rentals (any lease under 175 consecutive days) are legal throughout Cape May, but every rental unit must be inspected and licensed annually through the City Clerk's mercantile/rental license program, with square-footage-based fees of $125-$300 per unit plus a $50 tourism assessment and $25 parking surcharge (license year May 1-April 30). The biggest obligations are the annual Fire Prevention Bureau inspection, mandatory liability insurance ($500,000 for typical non-owner-occupied rentals), and a Cape May County-resident managing agent; there is no owner-occupancy rule, night cap, or minimum stay. Lodging taxes total about 14.625% (6.625% sales tax + 5% state occupancy fee + 3% municipal occupancy tax) on marketplace bookings, which platforms like Airbnb collect, while traditional realtor-brokered rentals are tax-exempt. Always confirm current requirements with the city before operating.

What’s required: a Rental License (Mercantile License - Residential Short Term Rental Unit) ($125) is required; occupancy taxes apply; renew annual.